I'm not sure how I feel about watermarking, for a couple of reasons.
First, my ebooks are backed up to a cloud service as well as to physical media and, as has been pointed out, there are vulnerabilities inherent in that.
Second, I'm clueless about what watermarking actually involves. I buy all my ebooks from legal sources and then add them to Calibre with Alf's plugins (was very grateful to find Alf after the demise of Peanut Press/ereader/Fictionwise and MSLit). It seems like a pretty good bet that I'll be able to convert my books to any new format that comes along so I'll continue to have access to them. Are all forms of watermarking future-proof? If there end up being a lot of types of watermarking is it possible that some of them will trip up conversion programs down the road?
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